Here's Why Doximity (DOCS) is a Strong Growth Stock

Core Viewpoint - Zacks Premium offers various tools and resources to help investors make informed decisions and enhance their confidence in stock market investments [1] Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe [2] - Stocks are rated from A to F based on their value, growth, and momentum characteristics, with A being the highest score [2] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score evaluates a company's future prospects by analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by assessing factors like one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator that highlights stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.93% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [10] - Stocks with a 3 (Hold) rank should also have Style Scores of A or B to ensure potential upside [10] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial when selecting stocks, as stocks with lower ranks (e.g., 4 or 5) may still decline despite having high Style Scores [11] Company Spotlight: Doximity - Doximity is a leading professional medical network in the U.S., reaching over 80% of physicians and 60% of advanced practice providers [12] - Doximity holds a 3 (Hold) Zacks Rank and a VGM Score of B, indicating potential for growth [12] - The company has a Growth Style Score of A, with a forecasted year-over-year earnings growth of 10.6% for the current fiscal year [13] - Recent analyst revisions have increased the earnings estimate for fiscal 2026, with the Zacks Consensus Estimate rising to $1.57 per share [13] - Doximity has an average earnings surprise of +27.9%, making it a strong candidate for growth investors [13][14]